Linklaters advises on first ‘fixed for life’ high yield security

  • US$300 million 7.95% Senior Guaranteed Perpetual Capital Securities
  • Advised J.P. Morgan, HSBC, DBS Bank and DB Trustees for Road King Infrastructure
  • Securities listed on Singapore Stock Exchange   

Linklaters has advised J.P. Morgan Securities, HSBC, and DBS Bank Ltd. as joint lead managers and DB Trustees (Hong Kong) Limited as trustee on the US$300 million 7.95% Senior Guaranteed Perpetual Capital Securities issued by Road King Infrastructure through its financing subsidiary RKP Overseas Finance 2016 (A) Ltd. The securities are listed on the Singapore Stock Exchange.

Road King Infrastructure Limited is a leading listed company in Hong Kong with its core business in the investment, development, operation and management of toll roads and property projects in China.

Linklaters Hong Kong-based partner William Liu, commented:

“This is the first ever fixed for life senior perpetual security issued in the high yield space and merged our technical know-how of fixed for life perpetual securities and high yield covenant packages to provide our clients with an innovative product for Road King.”

Linklaters has extensive experience of advising on high yield debt transactions and perpetual securities issuances in Asia having worked on:

  • NWD Finance (BVI) Ltd and New World Development Company Limited on their USD 1.2bn issue of 5.75% Guaranteed Senior Perpetual Capital Securities - the largest ever issuance of fixed for life senior perpetual securities
  • Underwriters on Guangzhou R&F Properties Co. US$1bn 8.5% senior notes issued by Trillion Chance
  • Xinhu (BVI) Holding Company Ltdon their US$700 million 6% Senior Notes due 2020
  • Biostime International Holding Limited’s US$400m 7.25% Senior Notes.

Linklaters capital markets partners William Liu and Patrick Sheil led the transaction supported by managing associates Taiki Ki and Christian Felton.